BUSINESS NOTES.CONRAIL AGREES ON MERGER: Conrail Inc. agreed late Friday to an amended merger agreement that would allow suitors CSX CSX Chessie Seaboard Multiplier (railroad transportation company)
CSX Cayman Islands Stock Exchange
CSX Changsha, China (Airport Code)
CSX Cardiac-Specific Homeobox
CSX Seaboard Coastline Railroad Corp. and Norfolk Southern Corp. to split the railroad and end months of legal and corporate brawling.
The $10.5 billion deal, if approved, ultimately would transform the freight rail system in the heavily congested con·gest·ed
Affected with or characterized by congestion.
congested ENT adjective Referring to a boggy blood-filled tissue. See Nasal congestion. Northeast, where Conrail has dominated for more than two decades.Under the amended agreement, CSX will pay $115 per share for the Conrail stock it doesn't own, up from $110 earlier. The total value of the deal is $10.5 billion and matches the amount Norfolk Southern had offered.
Conrail's board had been pushing for CSX's lower-price offer in order to keep the company intact; CSX had promised to keep the new company headquartered in Philadelphia. Conrail shareholders, however, refused Jan. 17 to let CSX move ahead with its proposed takeover.
AIRLINES INCREASE PRICES: Some of the country's biggest airlines raised prices Friday after the return of a 10 percent ticket tax, but competitors might force them to roll back the higher fares by next week.
With No. 1 domestic carrier American Airlines American Airlines
Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the holding back on the increase, Northwest Airlines raised fares 4 percent - a step matched by United Airlines. Continental stayed with a 10 percent increase.
Delta initially raised prices 10 percent on most routes Friday, then turned around and said it would keep all of its rates the same. US Airways, until recently known as USAir, said it would not raise fares.
Southwest Airlines This article is about the American airline. For the former Japanese airline, see Japan Transocean Air. For the British airline, see Air Southwest.
Southwest Airlines Co. , meanwhile, not only kept fares the same but brought back a 2-for-1 ticket promotion that it had dropped in April.
AVNET MOVES L.A. DIVISION: The computer parts and electronic components distributor is moving its largest division from Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. to Phoenix.
Avnet, based in Great Neck, N.Y., has moved most of its operations to Phoenix and currently employs more than 1,700 people in 12 locations.
ICAHN GAINS CONTROL OF MARVEL: The battle for control of the comic book comic book
Bound collection of comic strips, usually in chronological sequence, typically telling a single story or a series of different stories. The first true comic books were marketed in 1933 as giveaway advertising premiums. and sports card company neared an end Friday as Ronald Perelman For the actor, see .
Ronald Owen Perelman (born January 1, 1943) is an American billionaire investor who made his fortune buying beleaguered corporations and re-selling them later for enormous profits. , the financier who has controlled it since 1988, agreed to walk away with his profit and allow bondholders led by Carl Icahn to take control.
The deal, worked out in talks that had begun after bondholders won an important victory in bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. , has not yet been signed, officials said, and could fall apart if the bondholders conclude there is less value in Marvel than had been thought.
CAMELS GET MORE EXPENSIVE: R.J. Reynolds Tobacco Co., the maker of Winston and Camel cigarettes, boosted its wholesale prices by about 4 percent Friday in a move that analysts said could add about a nickel to the retail price of a pack of smokes.
The nation's second-biggest tobacco marketer informed its customers late Thursday that it was boosting its prices, effective Friday, to offset rising costs. It was the first increase in cigarette prices since April 1996.
Philip Morris USA Philip Morris USA is the United States tobacco division of Altria Group, Inc. General information
On January 27, 2003, Philip Morris Companies Inc. changed its name to Altria Group, Inc. Even under this new name, Altria continues to own 100% of Philip Morris USA. , the biggest U.S. tobacco maker with brands like Marlboro and Virginia Slims, and other tobacco companies made no immediate move to match the price hike.
But analysts said they expected the industry would do so within days.
ROLLING ROCK GETS NEW CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. : Labatt USA has replaced the chief executive at the brewery that makes Rolling Rock beer.
Al Spinelli, chief executive at Latrobe Brewing Co. in western Pennsylvania, was replaced last week by Philip Hall, a longtime executive with Labatt's Canadian operations.
The brewery shipped a record high 1.08 million barrels of beer in 1995, but output dipped slightly last year. The Rolling Rock brewery had much more independence than other operations within Labatt's USA.
FED CHAIRMAN ADDRESSES E-COMMERCE: Government may have an interest in regulating the infant world of electronic commerce, but its involvement should be minimal, Federal Reserve Chairman Alan Greenspan Alan Greenspan
Dr. Greenspan is Chairman of the Board of Governors of the Federal Reserve System. Dr. Greenspan also serves as Chairman of the Federal Open Market Committee (FOMC), the Fed's principal monetary policymaking body. said Friday.
He characterized privacy as a cherished value in America and ensuring it is not violated as a key challenge facing electronic commerce.
If consumers are going to have confidence in the new ways of automating payments, doing business over the Internet and using stored-value cards, privacy and security are a must, he said.